When the current price of an item is greater than the item's market clearing price
A. quantity supplied is greater than quantity demanded.
B. quantity supplied is less than quantity demanded.
C. supply is greater than demand.
D. demand is greater than supply.
Answer: A
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Special interest group Q receives a 1/10,000th slice of the economic pie. Its net benefit from either an economic growth policy or a transfer policy is $50,000. In order for group Q to be indifferent between the two policies, the economic growth policy would have to make the size of the economic pie (Real GDP) grow by _________________. This type of analysis is used to show that special interest
groups tend press government for ______________ instead of ________________. A) $50,000,000; economic growth; transfers B) $500,000; transfers; economic growth C) $500,000,000; transfers; economic growth D) $5,000,000; transfers; economic growth E) none of the above
An efficiency wage is defined as
A. any wage scheme that is accepted by the union. B. a wage above the competitive wage that elicits greater effort on the part of workers. C. any wage scheme that pays all workers the same wage. D. a wage below the competitive wage that elicits greater effort on the part of the workers. E. any wage scheme that pays different workers different wages.
If a country's imports are less than its exports, a country has a trade surplus.
Answer the following statement true (T) or false (F)
The sellers pay the entire sales tax levied on a good when demand is perfectly ________ or supply is perfectly ________
A) elastic; inelastic B) elastic; elastic C) inelastic; inelastic D) inelastic; elastic